Johnson & Johnson has agreed to acquire Actelion Ltd. for $30 billion

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Johnson & Johnson has agreed to acquire Actelion Ltd. for $30 billion, in an unusual deal that will also spin out the Swiss biotech company’s drug-discovery operations. The deal, the largest in J&J’s history and announced by both companies Thursday, ends weeks of seesaw negotiations. J&J initially abandoned talks, only to resume them about a week later after the companies entered into exclusive negotiations.

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Johnson & Johnson Bolsters Drug Roster With $30 Billion Actelion Deal

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Johnson & Johnson would pay for the transaction with cash it holds outside the United States. “We believe this transaction offers compelling value to both Johnson & Johnson and Actelion shareholders,” Alex Gorsky, the chairman and chief executive of Johnson & Johnson, said in a news release. Jean-Paul Clozel, the Actelion chief executive, would serve as the spinoff’s chief executive, and Jean-Pierre Garnier, Actelion’s chairman, would be its chairman. It is conditioned on Actelion shareholders agreeing to the spinoff and to sell at least 67 percent of their shares to Johnson & Johnson. Johnson & Johnson would initially own 16 percent of the new research and development company, with the right to acquire an additional 16 percent.

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Johnson & Johnson shareholders are also expected to realize additional value from the Johnson & Johnson convertible ownership interest in R&D NewCo. Value-enhancing transaction for Johnson & Johnson shareholders : The transaction is expected to be immediately accretive to Johnson & Johnson earnings per share and accelerate Johnson & Johnson revenue and earnings growth rates, while enhancing long-term growth and value creation of the Janssen Pharmaceuticals business. About Johnson & JohnsonCaring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. About the Janssen Pharmaceutical Companies of Johnson & JohnsonAt the Janssen Pharmaceutical Companies of Johnson & Johnson, we are working to create a world without disease. Johnson & Johnson embraces research and science – bringing innovative ideas, products and services to advance the health and well-being of people.